Public companies among Vindhya Telelinks Limited's (NSE:VINDHYATEL) largest shareholders, saw gain in holdings value after stock jumped 16% last week

Key Insights

• Vindhya Telelinks' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 4 shareholders own 58% of the company
• 13% of Vindhya Telelinks is held by Institutions

To get a sense of who is truly in control of Vindhya Telelinks Limited (NSE:VINDHYATEL), it is important to understand the ownership structure of the business. With 29% stake, public companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies collectively scored the highest last week as the company hit ₹27b market cap following a 16% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Vindhya Telelinks.

Check out our latest analysis for Vindhya Telelinks

What Does The Institutional Ownership Tell Us About Vindhya Telelinks?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Vindhya Telelinks. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Vindhya Telelinks' historic earnings and revenue below, but keep in mind there's always more to the story.

Vindhya Telelinks is not owned by hedge funds. Universal Cables Limited is currently the company's largest shareholder with 29% of shares outstanding. With 11% and 9.8% of the shares outstanding respectively, The Punjab Produce & Trading Co. Pvt. Ltd. and Belle Vue Clinic are the second and third largest shareholders.

Our research also brought to light the fact that roughly 58% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Vindhya Telelinks

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own some shares in Vindhya Telelinks Limited. In their own names, insiders own ₹1.2b worth of stock in the ₹27b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 25% stake in Vindhya Telelinks. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

We can see that Private Companies own 27%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public Company Ownership

We can see that public companies hold 29% of the Vindhya Telelinks shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Vindhya Telelinks better, we need to consider many other factors. For example, we've discovered 2 warning signs for Vindhya Telelinks (1 is a bit concerning!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.